LIFESTYLE

Nearly 1-in-4 Washington employers considering leaving the state, new survey shows

May 4, 2026, 5:37 PM | Updated: 5:40 pm

Nearly 1-in-4 Washington employers are considering moving their businesses out of the state, according to a survey from the Association of Washington Business (AWB) published Monday.

AWB reported that 24% of employers are looking into relocating — up from 17% in the previous quarter and nearly triple the number from the association’s winter 2025 survey.

“I believe it’s a 911 emergency for our state’s economy,” AWB President Kris Johnson told KIRO Newsradio.

The personal migration trend is even steeper. Another 55% said they are considering moving their personal residence to another state, a 44% increase from the previous quarter, according to a news release from AWB.

“In Spokane County, a short drive from the Idaho border, 67% of respondents said they were considering moving their personal residence to another state,” the report stated.

The survey was based on 407 responses.

Key findings from AWB spring 2026 employer survey

  • Tax burden: 72% of respondents rate Washington’s overall tax burden as a top business challenge, up from 64% last quarter and up 18 points since winter 2025.
  • Economic confidence: 7% rate Washington’s economy as strong or very strong, down from 10% last quarter and down 16 points since winter 2025.
  • Business growth: 22% say their business is growing, up slightly from last quarter but down 5 points since winter 2025.
  • Expansion plans shifting out of state: 9% plan to expand in Washington in the next year, down from 20% in winter 2025, while 38% are planning to expand in another state, up from 21% in winter 2025.
  • Recession expectations: 46% expect a recession in the next year, up from 34% last quarter and up 29 points since winter 2025.

The cost of healthcare came in second on the list of business challenges behind the state’s overall tax burden, with 65% citing it as a concern. Government regulations ranked third at 58%, and the cost of fuel came in fourth, with 53% flagging it, the release said.

AWB president warns lawmakers: Businesses are already leaving Washington

“It’s tempting for lawmakers to dismiss this kind of report and to suggest that businesses won’t really leave, but that would be a mistake,” Johnson said. “We are already seeing evidence of employers moving operations or moving their personal residence to other states, and we expect to see more in the coming years as plans that are being made right now are put into motion.”

Among the businesses considering moving out of Washington, 18% are developing a relocation plan, and 7% have secured a new location elsewhere, according to the survey.

Other states are actively courting Washington employers

Johnson told KIRO Newsradio that other states are encouraging businesses to leave.

“Seventeen percent of respondents say they’ve already been contacted by an out-of-state economic development official,” he said. “That means our employers are being courted by other states. They’re being courted to move personally, and they’re being courted to move their businesses. So other states are lining up to recruit the golden goose that we have, this amazing economy that we have.”

AWB conducts the survey each quarter. This latest survey was conducted between April 8 and April 22, 2026.

Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.

sign up for the 425 Magazine newsletter

Lifestyle

FILE - Gloria Steinem speaks during the 2021 Princess of Asturias Awards ceremony in Oviedo, northe...

Associated Press

Gloria Steinem, a potent voice of US feminism and co-founder of Ms. Magazine, has died

NEW YORK (AP) — Gloria Steinem, the celebrated author and activist who became one of the most visible symbols and potent voices of the U.S. women’s movement and a fierce advocate for feminist causes throughout her life, has died. She was 92. With her trademark streaked hair parted down the middle and large aviator glasses, […]

6 hours ago

Meygan Maloney poses for a portrait with her son Callum Wilson, 3, Friday, Aug. 28, 2026, at their ...

Associated Press

AP Exclusive: Hundreds of thousands of eligible kids are waiting for childcare assistance

INDIANAPOLIS (AP) — There’s the mother of two who needs a full-time job to keep up with the bills, but can’t afford full-time childcare. There’s the medical technician who stopped buying groceries and turned to food banks so she could pay for her infant’s care. There’s the baby who remained in foster care, even after […]

12 hours ago

South Sound Business...

South Sound Business

Tacoma’s Making a Difference Foundation Awarding More Than $26K in Scholarships

Originally published on South Sound Business. Tacoma’s Making a Difference Foundation yesterday announced the recipients of its 2026-27 scholarship program, which is awarding a total of $26,500 to 11 students pursuing higher education. The annual scholarship program awards students who have demonstrated academic achievement, perseverance, leadership, and a commitment to making a positive impact on […]

17 hours ago

425 Magazine...

425

Redmond Student Bands Shine in Bach to Rock National Competition

Originally published on 425. Two student bands from Bach to Rock’s Redmond location earned national recognition in the music school’s sixth annual National Battle of the Bands competition. In the middle school division, Murder on Mars took first place. In the elementary school division, Evergreen Titans was named a runner-up. After local and regional contests, […]

17 hours ago

South Sound Business...

South Sound Business

Sound Credit Union Breaks Ground on New Port Orchard Branch

Originally published on South Sound Business. Tacoma-based Sound Credit Union on Tuesday ceremoniously broke ground on a new branch in Port Orchard. The site will be Sound’s 27th full-service branch in the Puget Sound region when it opens next spring. Sound Credit Union purchased the property two years ago at the intersection of Bethel Road […]

18 hours ago

A memorial wall for Dolly Parton stands outside the Dollywood theme park in Pigeon Forge, Tenn., We...

Associated Press

Dollywood theme park will add new features, including a waterfall, to honor Dolly Parton

SEVIERVILLE, Tennessee (AP) — Dolly Parton’s theme park in east Tennessee will unveil new features for fans to honor the life of the “dreamer-in-chief,” Dolly Parton, who died at the age of 80. Sevierville, in the foothills of the Great Smoky Mountains, will also be placing markers throughout the city for a self-guided walking tour […]

20 hours ago

Nearly 1-in-4 Washington employers considering leaving the state, new survey shows